Gogoro China
By merging with a Special Purpose Acquisition Company (SPAC)Go to Nasdaq-listed Gogoro, which will be officially traded under the stock code of “GGR” from today. Through the listing in the United States, Gogoro is expected to obtain a total of 335 million US dollars (regarding 9.6 billion Taiwan dollars / 2.6 billion Hong Kong dollars) including private placement cash, which will be used to develop new markets such as China, India and Indonesia.
However, this capital is much less than the originally expected $550 million, which is also one of the shortcomings of the SPAC model. Before the merger, investors can recover their investment at the issue price. Although the proportion of Gogoro’s recovery here is relatively small among recent SPACs, it is also 85%, making Gogoro less than expected. After going public, Gogoro will also face the pressure of making profits, and it will no longer be able to move forward at its own pace like before.
